Fixed Premium Prepayment Refinancing Privilege Sample Clauses
The Fixed Premium Prepayment/Refinancing Privilege clause allows a borrower to pay off or refinance a loan before its scheduled maturity by paying a predetermined premium. This premium is typically a fixed percentage of the outstanding principal or a set fee, and it applies if the borrower chooses to settle the debt early, whether through prepayment or by refinancing with another lender. The core function of this clause is to compensate the lender for the potential loss of interest income due to early repayment, while also providing the borrower with flexibility to manage their debt obligations.
Fixed Premium Prepayment Refinancing Privilege then the borrower must select 1 of the following 3 alternative premium options.
Fixed Premium Prepayment Refinancing Privilege then the borrower must select 1 of the following 3 alternative premium options. "X" for 10% premium declining over o7 10 years "V" for 5% premium declining over 5 years "P" for par (no premium) ________________________ 7Insert in the box "X" if the Borrower selects a 10% premium declining over 10 years as the premium option for the Fixed Premium Prepayment/Refinancing Privilege that is to apply to this Advance. Insert in the box "V" if the Borrower selects a 5% premium declining over 5 years as the premium option for the Fixed Premium Prepayment/Refinancing Privilege that is to apply to this Advance. Insert in the box "P" if the Borrower selects par (no premium) as the premium option for the Fixed Premium Prepayment/Refinancing Privilege that is to apply to this Advance. ADVANCE REQUEST (RUS APPROVAL REQ'D) - page 5 The undersigned hereby certifies that the authority of the undersigned to execute and deliver this Advance Request on behalf of the Borrower is valid and in full force and effect on the date hereof. NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (the "Borrower") By: _______________________ Name: _______________________ Title: _______________________ Date: _______________________ NOTICE OF RUS APPROVAL OF ADVANCE REQUEST Notice is hereby given to FFB that the preceding Advance Request made by the Borrower identified therein has been approved by RUS for purposes of the Bond identified therein. FOR ACCOUNTING USE ONLY: RUS Budget Account Number ____________ ADMINISTRATOR of the RURAL UTILITIES SERVICE, acting through his or her duly authorized designee By: ____________________________ Name: ___________________________ Title: _____________________________ Date: _____________________________ ADVANCE REQUEST (RUS APPROVAL REQ'D) - page 6 FORM
Fixed Premium Prepayment Refinancing Privilege